Labour spin over bogus “funding boost” claims exposed
Southwark Labour MP Neil Coyle’s claim that the government’s local government settlement leaves Southwark with a “£38 million boost” has been exposed as misleading at a meeting of the council’s Overview and Scrutiny Committee last night (7th January).
Far from a “boost”, the Labour run authority now faces a confirmed funding gap over a three year period totalling £85 million, with government grants falling by around £20 million.
The Liberal Democrats have been raising the alarm bell over the funding reforms since last summer, warning that the Labour government were pulling funding from inner-London areas despite acute levels of deprivation and need. The Institute of Fiscal Studies had similarly said that London was the “big loser” of the reforms.
In a move showing that local Labour politicians consistently refuse to hold their own Government to account, Southwark’s Labour group also refused to sign a joint letter with the Liberal Democrats to the Secretary of State for Local Government about the cuts.
Southwark Liberal Democrat Leader Cllr Victor Chamberlain described the report on the funding challenges as “sobering”. Responding to questions from Cllr Chamberlain, the councils top finance officer could not rule out job losses, service cuts, and further outsourcing as a consequence of these cuts.
Commenting, Southwark Liberal Democrat Leader of the Opposition Cllr Victor Chamberlain said:
“It’s disappointing, but not surprising, that Labour MPs are resorting to statistical contortions to spin a good-news story. The reality is an £85 million black hole in Southwark’s finances caused by Labour’s cuts.
They can’t defend it, and they won’t stand up to a Government that’s actively undermining local services. Instead, residents are left exposed to more Labour mismanagement: wasting money on vanity projects while getting the priorities wrong.
The Liberal Democrats have a plan to fix Southwark and are the only credible alternative to a tired Labour administration that’s run out of ideas and stopped standing up for residents.”